KRBL 2021-22 Annual Report Analysis

Mon, 12 Sep

KRBL has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

KRBL Income Statement Analysis

• Operating income during the year rose 5.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 19.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.7% in FY22 as against 20.6% in FY21.
• Depreciation charges increased by 3.2% and finance costs decreased by 43.2% YoY, respectively.
• Other income grew by 88.3% YoY.
• Net profit for the year declined by 17.8% YoY.
• Net profit margins during the year declined from 14.0% in FY21 to 10.9% in FY22.

KRBL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	39,919	42,106	5.5%
Other income	Rs m	227	427	88.3%
Total Revenues	Rs m	40,146	42,533	5.9%
Gross profit	Rs m	8,222	6,620	-19.5%
Depreciation	Rs m	720	742	3.2%
Interest	Rs m	236	134	-43.2%
Profit before tax	Rs m	7,494	6,171	-17.6%
Tax	Rs m	1,905	1,577	-17.2%
Profit after tax	Rs m	5,589	4,594	-17.8%
Gross profit margin	%	20.6	15.7
Effective tax rate	%	25.4	25.6
Net profit margin	%	14.0	10.9

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KRBL Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 5 billion as compared to Rs 7 billion in FY21, thereby witnessing an decrease of -33.1%.
• Current assets rose 6% and stood at Rs 36 billion, while fixed assets fell 6% and stood at Rs 12 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 47 billion as against Rs 46 billion during FY21, thereby witnessing a growth of 3%.

KRBL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	36,925	40,702	10.2
Current Liabilities	Rs m	7,284	4,870	-33.1
Long-term Debt	Rs m	60	0	-100.0
Total Liabilities	Rs m	46,278	47,480	2.6
Current assets	Rs m	34,056	35,947	5.6
Fixed Assets	Rs m	12,223	11,533	-5.6
Total Assets	Rs m	46,278	47,480	2.6

KRBL Cash Flow Statement Analysis

• KRBL's cash flow from operating activities (CFO) during FY22 stood at Rs 6 billion, an improvement of 46.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion, an improvement of 1,668.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 323 million from the Rs 1 billion net cash flows seen during FY21.

KRBL Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	3,837	5,608	46.1%
Cash Flow from Investing Activities	Rs m	-117	-2,063	-
Cash Flow from Financing Activities	Rs m	-2,271	-3,222	-
Net Cash Flow	Rs m	1,450	323	-77.8%

Current Valuations for KRBL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.5, an decline from the EPS of Rs 23.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 319.8, stands at 15.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	169.6	178.9
TTM Earnings per share	Rs	23.7	19.5
Diluted earnings per share	Rs	23.7	19.5
Price to Cash Flow	x	6.7	11.3
TTM P/E ratio	x	7.6	15.6
Price / Book Value ratio	x	1.6	1.5
Market Cap	Rs m	57,329	60,130
Dividends per share (Unadj.)	Rs	3.5	3.5

Ratio Analysis for KRBL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.4x during FY22, from 4.7x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 47.1x during FY22, from 32.8x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 11.3% during FY22, from 15.1% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 15.5% during FY22, from 20.9% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 10.0% during FY22, from 12.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	4.7	7.4
Debtors’ Days	Days	184	251
Interest coverage	x	32.8	47.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.6	10.0
Return on equity	%	15.1	11.3
Return on capital employed	%	20.9	15.5

To see how KRBL has performed over the last 5 years, please visit here.

KRBL Share Price Performance

Over the last one year, KRBL share price has moved up from Rs 257.7 to Rs 319.8, registering a gain of Rs 62.1 or around 24.1%.

Overall, the S&P BSE SENSEX is up 3.2% over the year.

(To know more, check out historical annual results for KRBL and quarterly results for KRBL)

Read: Latest Annual Report Analysis of KRBL